Are the miserable more likely to rent or own?

There’s an article over in the Globe and Mail titled “The Rise of the Miserable Canadian Homeowner

They talk about some of the complaints people have over the cost of ownership and the recent inability for the Canadian consumer to live within their means.

But if homeowners are dissatisfied about how they’re managing their finances, we must also consider their single largest expense on month-by-month basis. That would be the mortgage payments they’re making on their homes.

The problem with housing is that it’s expensive compared to our incomes. I will document this further in an upcoming column, but for now let’s just say that mortgages plus other basic costs of day-to-day living, such as cars and daycare, may leave us with little money left over. And so we borrow more through credit lines and credit cards. That’s our unofficial second income.

The Manulife survey shows homeowners are not happy about how things are working out, which is noteworthy. We’ve been borrowing madly as a nation for the better part of five years now, and the story has so far been cast as one of imprudent behaviour. Here, we get a sense that there’s a cost in stress and angst.

Read the full article for a run down on the numbers of people happy vs unhappy with their household finances. Basically one in three homeowners are very unhappy with how they are managing their money.

 

57 Comments
newest
oldest most voted
Inline Feedbacks
View all comments
g
g
6 years ago

“Good thing you moved away from Metro Vancouver to obtain that situation….guess you were one of the smart ones that realized its better to own in tiny town like Salmo than to pay double the cost of renting in Vancouver ” I live at Metrotown not Salmon Arm,and for “aa4 says”I spend 18% of my pre-tax income on my mortgage and maintenance fees.AA4 Dont you pay for tenant insurance to protect your belongings ,or to relocate you to a hotel in case of a fire or flood in your building?Nowadays most people go to restaurants because it costs almost the same to cook at home. Again I cant understand why renters are on this site if you are so happy renting?You can buy in Langley, Surrey ,Port Coquitlam etc.where prices have taken a nose dive compared to a couple of… Read more »

aa4
aa4
6 years ago

Meanwhile the happy renters like me. Spending about 20% of my pre-tax income on rent. And no worries about property taxes, insurance or maintenance.

Going out for dinner, parking things like that are ridiculously cheap compared to peoples monthly mortgage costs.

G - we - all - have - big- $$$$
G - we - all - have - big- $$$$
6 years ago

“My mortgage and maintenance fees are less than half what it would cost me to rent so why would I choose rentals(I bought a few years back).”

Good thing you moved away from Metro Vancouver to obtain that situation….guess you were one of the smart ones that realized its better to own in tiny town like Salmo than to pay double the cost of renting in Vancouver 🙂

Son of Ponzi
Son of Ponzi
6 years ago

Expired/ Cancelled : 87

g
g
6 years ago

“#50 – Buddy I am a renter and I am well into the “1%”
My mortgage and maintenance fees are less than half what it would cost me to rent so why would I choose rentals(I bought a few years back).I have already been asked to move out by landlords who decided they would move in themselves,3 times already.I have investments too earning over 20% annually .
Regarding the renter and his new truck,the point is not the exact price he paid, but that the idiot was paying $2500 a month in rent and car payments.
If you were in the “1%” you would own properties all over the world.

YVR
YVR
6 years ago

Vancouver condo marketing taken to it’s logical extreme (Trump tower). That is some high production value:

You may note both marketing videos (Trump Tower & One Pacific) which offer condos up to $10 million do not have one Asian person in either video. The same real estate industry who claims the market is being driven by Asians is marketing to white locals. I would think if HAM was actually buying they might include a couple of Asian looking people in them. With a billion mainlanders waiting to plunk down cash on these multi million dollar places why are they marketing to local whites?

2.79% 5 yr. NEVER AGAIN
2.79% 5 yr. NEVER AGAIN
6 years ago

#50 – Buddy I am a renter and I am well into the “1%”

Give it up. My money is in liquid assets providing yield and growing. I don’t need to be an “owner” to define myself as having made it. I come here because I enjoy sharing what I have learned and trying to somehow balance all the bullshit about having to own real estate.

PS – A $40,000 truck would be a piece of shit these days

g
g
6 years ago

Why are renters even on this site?There should be a site such as Vancouver Renters Info where they can compare their sad stories of bad slumlords.Life is choices,if you choose to rent thats fine but you shouldn’t be down-voting here.BTW if you want to see lots of new cars parked in buildings go to housing co-ops,if you want to see old beaters ,go to owner occupied buildings.I laugh when I see a smuck renting and driving around in a $40000 truck trying to impress his friends.

Softy
Softy
6 years ago

“Krugman knows as well as anyone else that bubbles give only short term relief at the expense of long term pain.” But we have an economy that needs bubbles: Krugman: 2. An economy that needs bubbles? We now know that the economic expansion of 2003-2007 was driven by a bubble. You can say the same about the latter part of the 90s expansion; and you can in fact say the same about the later years of the Reagan expansion, which was driven at that point by runaway thrift institutions and a large bubble in commercial real estate. So you might be tempted to say that monetary policy has consistently been too loose. After all, haven’t low interest rates been encouraging repeated bubbles? But as Larry emphasizes, there’s a big problem with the claim that monetary policy has been too loose:… Read more »

bestplaceonearth
bestplaceonearth
6 years ago

any business from the bears, paul?

2.79% 5 yr. NEVER AGAIN
2.79% 5 yr. NEVER AGAIN
6 years ago

“what’s the relationship between syphilis and renting?”

Renters are getting a lot more sex because they can afford to go out.

bestplaceonearth
bestplaceonearth
6 years ago

oh boy oh boy, silly bears are just getting more frustrating by the hour! they are even priced out in prince george.

Johnny-boy
Johnny-boy
6 years ago

I know why they are putting slots on the Ferries. To get our Communist friends over to the Island so they will revive the flagging Island RE, they should put them along the Sea-to-sky highway to help poor Whistler out.

canadaman
canadaman
6 years ago

Lucky the companies are bringing in all these tradespeople from Ireland,just in time for the crash.

paulb
6 years ago

New Listings 201
Price Changes 84
Sold Listings 148
TI:15507

http://www.paulboenisch.com

patriotz
6 years ago

@26: “Also, Nobel Laureate Krugman states that the economy needs perpetual bubbles to avoid mass unemployment.”

That’s not what he said at all. What he said is this:

Again, the evidence suggests that we have become an economy whose normal state is one of mild depression, whose brief episodes of prosperity occur only thanks to bubbles and unsustainable borrowing.

Krugman knows as well as anyone else that bubbles give only short term relief at the expense of long term pain.

kabloona
kabloona
6 years ago

Globe and Mail: Economy at risk as demand cools for new homes http://www.theglobeandmail.com/report-on-business/economy/housing/economy-at-risk-as-demand-cools-for-new-homes/article15499996/ “Canada’s economy is highly vulnerable to a slowdown in home construction, according to two new reports that highlight the country’s growing dependence on booming real estate markets. Construction now represents 7.1 per cent of Canadian economic output, a sharp increase from the 5.2 per cent in 2000, Fitch Ratings said in a report to be released Tuesday. The high level of employment and individual wealth tied to housing means that a “housing downturn could have serious consequences for the overall economy,” the ratings agency said. Separately, the country’s mortgage brokers are warning that the market is on the verge of a drop in housing starts – in part because of cooling demand for condos in large urban centres such as Toronto – that will cost thousands of… Read more »

Melba
Melba
6 years ago

…Vancouver condo marketing taken to it’s logical extreme (Trump tower). That is some high production value:

http://www.youtube.com/watch?v=sRIB1lk0N-c….

According to that video, there won’t be any Asians living at Trump Tower. Donald rug head should have paid more attention during his last junket.

Son of Ponzi
Son of Ponzi
6 years ago

German saying: Der Krug geht zum Brunnen, bis er bricht!

jesse
6 years ago

“Nobel Laureate Krugman states that the economy needs perpetual bubbles to avoid mass unemployment”

Nobel Laureate Krugman can of course determine a “bubble” when he sees one. The meme of our time is “bubbles”; one might suggest the term is itself in a “bubble”.

From what I see, the US is starting to be undersupplied on the housing front. That will start to change over the coming few years as they catch up. Rents in some areas are gonzo right now because of the persisting fallout from the credit crisis five years ago. That is going to produce some jobs as developers try to meet the demand, and that does not necessarily produce a “bubble”.

But hey I’m no “Nobel Laureate” who can throw around the term “bubble” and “bubbly” and “bubblicious” with impunity.

Son of Ponzi
Son of Ponzi
6 years ago

Richmond, City of Malls and Lambos.
When Wallmart opens, you’re gonna get around the center faster walking.
Also, the Germans will race their Porsches up and down no 3 at 10 km per hour.
Stupid, stupid place.

BWilson
BWilson
6 years ago

Just to clarify, new housing units completed but unabsorbed for Metro Vancouver (from CMHC): September 2013: 4204 September 2012: 3546 September 2011: 3033 The last few years there’s been a pretty good build up between September and the following January. Sept 2011 – January 2012 change in completed unabsorbed +587 Sept 2012 – January 2013 “” “” +695 I don’t see any reason why this trend wouldn’t continue, completed units are down ytd vs. 2012 despite there being more units u/c at year end 2012 than year end 2011. My point is that developers are building more than they’re selling and that’s likely going to continue over the near term. The last time inventory went down any material amount was Jan – Sept 2011 and at that time completions were much lower than they had been over the past 7+… Read more »

no charge
no charge
6 years ago

rent or own, doesn’t matter, there is financial insecurity everywhere. It’s a cosmic result of Pluto in Capricorn, square Uranus in Aries 2012-2015

the Globe and Mail knows this, but it’s not to be reported to the un-illuminated.

the last Pl square Ur was between 1932 and 1934. Those people born during the rise of global fascism show a high degree of Personal Insecurity. (Pluto was in Cancer and Uranus was in Aries). Since this time around Pluto is in Capricorn, the sign of money and business, the insecurity shows up in our wavering faith in financial pyramids.

oneangryslav2
oneangryslav2
6 years ago

@#33. Maybe spend some of the money you have saved by renting on comedy writing lessons, Chad.

Chad Whitefellow
Chad Whitefellow
6 years ago

I love renting! It means I have more money to spend on performance outdoor clothing and gourmet salt. Unlike my debt owning friends I can afford to go to Whole Foods and actually buy food that isn’t going to poison my body and destroy the planet.

Also, I don’t have to pack my lunch from home. I can afford to buy it from a food cart, and I can have a relationship with the people who I buy my food from.

And I like to kiss my dog on the lips.